Duggan, coalition outline efforts to help Detroiters claim millions in tax credits

Detroit — Mayor Mike Duggan and community partners announced Thursday that Detroiters can access millions in federal tax credits by scheduling a free appointment with a tax expert.

Last year, thousands of families in the city took advantage of the Earned Income and Child Tax Credit.

Duggan — joined by Accounting Aid Society, United Way for Southeastern Michigan, Wayne Metropolitan Community Action Agency, University of Michigan’s Poverty Solutions and Community Development Advocates of Detroit — kicked off the 2023 income tax season Thursday at the Ford Resource and Engagement Center on the east side of the city. There, the coalition outlined efforts to urge residents to claim their credits.

“There is a lot of money Detroit families are entitled to that they can use to save, invest, buy a car or fix their home, but you have to file your taxes to receive the refunds,” Duggan said. “The city and its partners are going to make sure every Detroiter has the help they need to file their taxes, especially if they haven’t filed in the past.”

With the help of the coalition’s work last year, Detroiters claimed more than $260 million in Earned Income Tax Credit (EITC) refunds alone in 2022, plus many millions more in Child Tax Credits. Prior to 2017, Detroiters eligible for EITC left an estimated $80 million of potential tax refunds unclaimed each year.

There are several cash payments available to Detroit families, including the EITC and the Child Tax Credit, for those who file taxes.

All residents with income less than $60,000 qualify for a free expert tax preparation appointment. For the 2023 tax season, Accounting Aid Society and Wayne Metro are returning to primarily in-person tax prep services. 

"Our experienced tax preparers allow clients to collect every dollar that is owed to them, so they can build financial stability for themselves and their families,” said Priscilla Perkins, President and CEO of Accounting Aid Society. “Paying rent, putting food on the table, or saving for a child’s education — clients can use that money to invest in the future."

Starting Thursday, residents can call 2-1-1 or visit www.getthetaxfacts.org to learn more and schedule an appointment. Drop-and-go and all-virtual appointments are also available.

Eligibility requirements for a Child Tax Credit

• Children under age 17 living at home.
• Earned at least $2,500 from working in 2022.
• Children must have a valid Social Security Number (adults may have an ITIN).
• If you are the child’s primary caregiver, you are likely eligible. You don’t need to be the child’s biological parent to qualify.

This year, the amount of the Child Tax Credit will return to 2019 levels, which will be between $1,500 to $2,000 per dependent.

"This is an important time of year for households who are working hard to make ends meet," said H. Luke Shaefer, professor of social justice, policy and faculty director of the University of Michigan's Poverty Solutions. "Tax refunds help families pay down debt, invest in car repairs, and all the other things they need. We all benefit when families can access these resources."

Who is eligible for Earned Income Tax Credit?The EITC is available to working families and individuals who meet certain income requirements. The amount of the refund depends on income, filing status and number of qualifying children claimed on tax returns. For example, a single individual with no children who works and makes less than $16,480 could get back as much as $594. A married couple with three or more children who files a joint return, with a combined income of less than $59,187 could receive the maximum EITC of $7,351.

The EITC provides extra income to workers with low to moderate incomes, up to $60,000. Adults and children must have a Social Security Number to apply for the EITC.

“Our goal is to help families get the most out of their tax returns and put that money back into the household budget,” said Louis D. Piszker, Wayne Metro chief executive officer. “It’s important to work with a certified preparer to maximize tax credits such as the home heating credit and dependent care. During your tax appointment, we can also talk about your property taxes, water, and energy assistance, along with financial counseling, debt reduction, and credit repair.”

srahal@detroitnews.com

Twitter: @SarahRahal_